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b . Explain the effect of Draghi's speech on the foreign exchange value of the dollar. If interest rates fall in the eurozone, it the
b Explain the effect of Draghi's speech on the foreign exchange value of the dollar.
If interest rates fall in the eurozone, it the desirability of investing in financial assets priced in euros.
As a result, the for euros will shift to the
In this case, the result is a equilibrium exchange rate between the euro and the dollar.
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